Analyze the media mixes, budgets, & timelines that lead to the best ROI

After we’ve measured the revenue and profitability of historical advertising campaigns, we help our clients derive insights from them that can be applied to future advertising programs.

The problem facing many marketers is that, even though lots of data points are available for use in media planning, it can be difficult to make sense of the data to make clear and actionable decisions.

How We Help

We help our clients and their media agency partners identify trends and insights from past campaigns and apply them to their media calendars. These trends and insights can answer big questions that influence the media planning process, including:

  • Which markets are the best candidates for advertising?
  • How much should I budget for a given market?
  • What mix of media should I use to address a particular market?
  • What results can I predict from our advertising program?
  • For what duration should I run a campaign?

To illustrate, one of our clients has a rich history of advertising across approximately 100 DMAs in the US market. These past campaigns varied in media mix, duration, and spend level across markets with a range of awareness levels and saturation. By analyzing the features of different advertising campaigns and comparing them to the campaign results, we can identify common characteristics of successful campaigns.

Budgeting for Optimal ROI

In this real-world example, we’ll use our historical data to help us set budget guidelines for future advertising campaigns.

2015 - 2016 ROI Increase

In the graph above, we’ve plotted 100 different campaigns to compare their spend level (horizontal axis) against the ROI they generated (vertical axis). This graph yields a few interesting insights:

  • In campaigns where the spend was too low (left side), it was difficult to achieve positive ROI -- or, the advertising spend wasn’t enough to make a difference.
  • In campaigns where the spend was too high, it was also difficult to achieve positive ROI -- or, the advertising spend was too high for there to be a positive return.
  • And, most importantly, we see a “sweet spot” on the graph -- a place where the advertising spend was appropriate to generate positive ROI.

This insight is a good starting point: we’ve learned that many successful campaigns share some common features in the amount of advertising spend budgeted per location.

To continue our example, we’ll answer another question: how long should we run our future advertising campaigns?

2015 - 2016 ROI Increase

This time, we’ll look at the same 100 campaigns to compare their duration (horizontal axis) against the ROI they generated (vertical axis). Here, we gain a few more insights:

  • In very short campaigns, the timeframe was too small (left side) to achieve positive ROI -- or, the campaigns weren’t in the market long enough to make a difference.
  • After about 24 weeks, the “optimal” state of ROI is achieved -- or, it takes about 24 weeks for a campaign to achieve its ultimate performance.

Using more advanced mathematical methods, we help our clients to understand the relative importance of the various factors that make up a successful campaign. These insights provide guidelines for future media planning.